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New Member
posted May 31, 2019 5:09:25 PM

I bought a new car in Georgia. I paid the new Ad Valorem tax where you pay the whole thing upfront when you buy the car. Can I deduct this under Car Registration Fees?

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1 Best answer
Level 15
May 31, 2019 5:09:27 PM

You are correct:

The new Georgia Title Ad Valorem Tax (TAVT) is not deductible as a property tax as it is not imposed on an annual basis. Instead it appears to be a tax in the nature of a sales tax. Thus the tax would be deductible on Schedule A of Form 1040 if you itemize as part of your state and local sales tax paid, however if you choose to deduct sales tax you cannot claim the deduction for state income taxes paid. Note because the deduction for state, local, or foreign taxes is based on taxes paid or accrued you can claim the deduction in the year you bought the car even if you finance the taxes as a part of the loan.


4 Replies
Level 15
May 31, 2019 5:09:27 PM

You are correct:

The new Georgia Title Ad Valorem Tax (TAVT) is not deductible as a property tax as it is not imposed on an annual basis. Instead it appears to be a tax in the nature of a sales tax. Thus the tax would be deductible on Schedule A of Form 1040 if you itemize as part of your state and local sales tax paid, however if you choose to deduct sales tax you cannot claim the deduction for state income taxes paid. Note because the deduction for state, local, or foreign taxes is based on taxes paid or accrued you can claim the deduction in the year you bought the car even if you finance the taxes as a part of the loan.


New Member
May 31, 2019 5:09:29 PM

Don't want to doubt you, but heard it both ways. Some say when the Ad Valorem tax was a yearly tax paid every year, it was deductible. But this up-front Ad Valorem tax is not deductible. I don't want to get audited.

Level 8
May 31, 2019 5:09:31 PM

I agree with @bsch4477
I live in GA and have not deducted TAVT as a property tax because it is not assessed annually.

New Member
May 31, 2019 5:09:33 PM

I called my County Vehicle office and the representative told me that they were told in class that the TVAT in Georgia is not deductible.